Huhtamaki has entered into an agreement to sell its Films business segment to DBAG Fund VI, a fund advised by Deutsche Beteiligungs AG, a German private equity company listed on the Frankfurt stock exchange. In July 2014 Huhtamaki announced that as a result of its growing strategic focus on food packaging it had started to evaluate options regarding its Films business.
The annual net sales of the Films segment were EUR 187 million in 2013 and the segment had 927 employees at the end of September 2014. The debt and cash free selling price is EUR 141 million. The transaction is subject to the approval of German competition authorities and it is expected to be finalized in late 2014 or early 2015. Upon the closing of the transaction, Huhtamaki expects to book a small capital gain and a reduction in goodwill of approximately EUR 45 million.
"We are very pleased to announce the divestment of our Films segment. We feel that DBAG is a good and committed owner for the Films business and has good resources for growing and developing the business further in the future. The segment's net sales have grown well in 2014 and its financial performance has improved markedly. I would like to take the opportunity to congratulate the management of the segment for a job well done. The future owner will continue to benefit from this good development. From Huhtamaki Group's point of view, this turns a new page in our story, with a further growing focus on food packaging," says Jukka Moisio, CEO.
The Films segment manufactures and sells films that are mainly used for technical applications in the label, adhesive tape, hygiene and health care industries, as well as building and construction, automotive, packaging and graphic arts industries. The segment serves global markets from manufacturing units in Europe, Asia, North America and South America.
Huhtamaki to sell its films business